When a business sells a piece of plant or machinery, the immediate focus is usually on the capital allowances consequences. Was the asset in the main pool or a single asset pool? Will there be a balancing allowance or a balancing charge? However, there is another aspect of the disposal that is frequently overlooked: the potential interaction with the chargeable gains rules. In certain circumstances, the disposal of business plant and machinery can result in both a balancing c

For many individuals, their home is their most valuable asset. As property values have increased over the years, it is not uncommon for homeowners to find themselves asset-rich but cash-poor, with a significant proportion of their wealth tied up in their property. A lifetime mortgage can provide access to some of that wealth without requiring the property to be sold. In some circumstances, it can also form part of an inheritance tax (IHT) planning strategy. However, many fami

Many married couples and civil partners own rental properties together. Where one spouse pays tax at a higher rate than the other, it is common to ask whether rental income can be allocated differently to reduce the family's overall tax liability. Whilst this is often possible, it is not simply a case of choosing how rental income is divided. The tax treatment depends on the beneficial ownership of the property, and any changes to ownership can have wider implications for Inc

Reaching retirement is one of the most significant financial milestones in life. Modern pension rules provide considerable flexibility over how and when you can access your pension savings, allowing you to tailor your retirement income to suit your circumstances. Currently, most individuals can access their pension benefits from age 55, although this minimum pension age is scheduled to increase to age 57 from 6 April 2028. Once eligible, you can choose to take pension funds v

One of the key challenges when claiming capital allowances is determining whether qualifying expenditure relates to plant and machinery or to a building or structure. This distinction is important because expenditure on plant and machinery may qualify for immediate relief through the Annual Investment Allowance (AIA) or writing-down allowances, whereas expenditure on buildings and structures generally does not. Where expenditure does not qualify as plant and machinery, it may

Significant revisions to Financial Reporting Standard 102 (FRS 102) are set to transform lease accounting for businesses across the UK and Republic of Ireland. Effective for accounting periods beginning on or after 1 January 2026, these changes will bring many leases onto the balance sheet and align UK GAAP more closely with international accounting standards. For many organisations, the impact will go beyond accounting, influencing financial metrics, tax positions, and comme

Annual Investment Allowance — why private equity-backed groups need to take extra care The Annual Investment Allowance (AIA) is a valuable relief for businesses investing in plant and machinery. It allows companies to deduct up to £1 million of qualifying expenditure from their taxable profits in the year the investment is made. However, the rules are not always straightforward. In particular, groups of companies and businesses under common control may need to share a single

When businesses invest in plant and machinery, one of the key considerations for tax relief is how that expenditure is classified. A particularly important category is long-life assets, which are subject to specific capital allowances treatment. What is a Long-Life Asset? A long-life asset is an item of plant or machinery that is expected to have a useful economic life of at least 25 years. If the asset is new, the expectation is based on its anticipated lifespan from first u

The UK corporation tax treatment of dividends is often assumed to be straightforward. In reality, while many dividends received by UK companies are exempt, the conditions for exemption are detailed and highly fact-specific. The key starting point is determining whether the recipient is a small company or a company that is not small (referred to here as a “large” company). The applicable exemption rules differ significantly depending on that classification. Why This Matters If

Are you part of a group of related companies or limited liability partnerships (LLPs) looking for a more efficient way to manage your VAT obligations? VAT group registration might be the solution, but it’s crucial to weigh the benefits and potential drawbacks before committing. This article explores VAT groups, including eligibility criteria, the registration process, advantages and disadvantages, and the implications for transactions with third parties and non-group members.